A power strapping tool having an anvil and a tensioning wheel adapted to engage with overlapping portions of a strapping looped about a package and extending to a supply. The tensioning wheel is rotatable in a direction as to tension the loop of strapping and maintain such strapping tensioned while overlying portions thereof are connected to each other and then in an opposite direction to relax and flex away from the underlying strapping portion a span of the overlying strapping extending between such wheel and the location of strapping connection to thereby position such flexed, overlying strapping portion for easy severence. In the preferred embodiment, rotation of the tensioning wheel is also relied upon to effect projection of a knife between the overlying flexed and the underlying strapping portions and to then again tension the overlying strapping portion whereby the flexed strapping is urged against the projected knife to thereby sever the applied loop of strapped from its supply.